Overnight Market Update: Key Global and Domestic Developments Impact Indian Stock Market
Indian Stock Market Expected to Open Cautiously on Friday
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday, following mixed cues from global markets. Asian markets traded mixed, while the US stock market ended higher overnight, led by a rally in technology stocks.
On Thursday, the Indian stock market ended with healthy gains, led by a short covering rally after the recent fall. The Sensex jumped 789.74 points, or 1.06%, to close at 75,398.72, while the Nifty 50 settled 277.00 points, or 1.18%, higher at 23,689.60.
| Market Index | Thursday's Close | Change |
|---|---|---|
| Sensex | 75,398.72 | +789.74 (1.06%) |
| Nifty 50 | 23,689.60 | +277.00 (1.18%) |
Market experts believe that Indian markets will remain sensitive to developments in the West Asia conflict, movement in energy prices, and trends in foreign fund flows. While the recent rebound indicates selective buying at lower levels, elevated inflation, currency weakness, and persistent geopolitical uncertainty are expected to keep overall sentiment cautious.
In a related development, US President Donald Trump is on a two-day visit to Beijing, where he held a bilateral meeting with Chinese President Xi Jinping. The summit between the two leaders aimed to maintain a fragile trade truce struck when the leaders last met in October. Trump suspended triple-digit tariffs on Chinese goods, and Xi backed away from choking global supplies of vital rare earths.
The global market cues for the Sensex today include:
- Asian Markets: Japan's Nikkei 225 gained 0.89%, while the Topix rallied 1.18%. South Korea's Kospi rose over 0.6% to a record high, and the Kosdaq eased 0.4%.
- US Stock Market: The Dow Jones Industrial Average rose 370.26 points, or 0.75%, to 50,063.46, while the S&P 500 gained 56.99 points, or 0.77%, to 7,501.24.
- US Retail Sales: Retail sales increased by 0.5% in April, following a downwardly revised 1.6% jump in March.
- Crude Oil Prices: Brent crude oil futures rose 0.57% to $106.32 a barrel, while US West Texas Intermediate futures were up 0.53% to $101.71.
- Bitcoin Price: Bitcoin prices jumped above $81,000 amid a rally in the broader cryptocurrency market.
- Gold Rate: Gold prices fell to a more than one-week low, amid inflation fears and signs of prolonged higher interest rates.
- Dollar: The dollar firmed and was set for its largest weekly gain in more than two months, with the dollar index rising to a two-week high of 98.98 against a basket of currencies.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Indian stock market is expected to remain cautious due to global market developments.
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